Intel: McAfee Adds Level Of Security To Products Using Intel Chips

Intel's $7.68 billion purchase of McAfee Inc. (MFE) will add a level of security to all products using Intel chips, executives from the chip maker said Thursday.

Renee James, head of Intel's software business, said the purchase will benefit chips used in servers and PCs in addition to new areas Intel has targeted, such as mobile devices and embedded products, which include everything from billboards to automated equipment.

The companies also view all areas where Intel sells chips as markets where the software business can grow, Intel Chief Executive Paul Otellini said.

"Our view is that everywhere we sell a microprocessor, there is an opportunity to sell security software with it," Otellini said during a conference call to discuss the deal.

On Thursday, Intel announced the plans to buy McAfee, which makes security software to protect computers from viruses and spyware. The deal is the largest in Intel's history and reflects the chip giant's growing ambition in areas outside of the PC market, where it dominates.

McAfee shares have soared 58% to $47.16, hitting the highest price since 1999. Intel shares were recently down 3.5% to $18.91.

-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@dowjones.com

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